The Alexander County Board of
Commissioners held a regular meeting on Monday, May 24, 2004 in the CatawbaValleyCommunity
College / Alexander Center Multipurpose Room, Taylorsville, North Carolina.

CALL TO ORDER

Chairman Keever called the meeting to
order at 6:00 PM.

INVOCATION & PLEDGE OF ALLEGIANCE

Commissioner Robertson gave the
invocation and also led the Pledge of Allegiance to the Flag.

***SPECIAL RECOGNITIONS***

The following were recognized:

Western Piedmont Sister Cities
Association

Chairman Keever
presented a plaque received from the Western Piedmont Sister Cities Association, which was
accepted by David Icenhour at a recent Sister Cities Meeting.The plaque was presented to AlexanderCounty in
appreciation for taking part in creating the Sister Cities Association.

Alexander CountyCrimestoppers Public Service Officers Awards of the Year

Chairman Keever recognized the following individuals who received awards:

Tim Chewning, Rescue Person of the Year

Mark St. Clair, Sheriffs Department Officer of the Year

Daniel Sweat, EMS Person of the Year

Gary Dino Rhyne, Firefighter of the Year

Lisa Johnson, Taylorsville Police Department Officer of the Year

Commissioner Hammer
conveyed his appreciation to these individuals as well as the organizations they
represent.

CHAIRMANS REPORT

The following issues were discussed
during the Chairmans Report:

A.Chairman Keever discussed a letter
recently received from NorthamptonCounty concerning county costs for Medicaid.The letter requests each countys support in
advocating for Medicaid cost reform in N.C. with legislative delegation.Chairman Keever explained that the letter requests
that legislative delegation pass a bill requiring the State to assume all responsibilities
for Medicaid over a period of time.Chairman
Keever pointed out that N.C. was one of only two states that still participated in funding
the Medicaid program and he requested that the Board approve a resolution in support of
the State assuming all responsibilities at the next Commissioners Meeting.

Commissioner
Bolick felt that the Medicaid issue needed to be a top priority for candidates running for
public office.

Commissioner
Harbinson stated that this issue was discussed at the recent Legislative Briefing held in Raleigh
and he noted that it was fact that N.C. counties picked up 15% of all Medicaid costs.He stated that some counties in the eastern part of
the state had to budget more for Medicaid than their funding for the school system.Commissioner Harbinson felt that it was not fair to
hold the counties responsible for Medicaid, especially when 48 other states were not
mandated to participate, and he agreed that this issue seriously needed to be addressed.

Rick French, County Manager, stated that the projected cost for the County due to Medicaid for 2004-2005 was
$1.4 million.Commissioner Robertson stated
that $1.4 million equaled approximately 8 cents on the tax rate and 6% of the total County
budget.

Commissioner
Bolick made a motion to approve Chairman Keevers request for approval of a letter of
support at the next meeting.Commissioner
Robertson seconded the motion.The Board voted
unanimously in favor of the motion.

B.Chairman Keever stated that the
General Assembly was discussing a fee increase for serving papers from $5 to $15; however,
he noted that one individual was holding up this process because his county served papers
a certain way and did not want to change.

Chairman Keever
also stated that there was a hold up on the sales tax elimination on county schools.Commissioner Harbinson stated that there had been
some discussion that the State may reduce the funding for county public school capital
fund by half.Commissioner Harbinson stated
that counties relied on this funding for school construction and he felt that reducing it
would cause counties a major burden.

C.Commissioner Robertson stated that
Charles Davis, a representative from the Regional EPA Enforcement Group Air Quality
Division in Mooresville, met with Russell Greene on Wednesday 19, 2004 to discuss the
location of the ozone measuring monitor in AlexanderCounty.After visiting the location, Mr. Davis agreed that the current location of
the monitor might not be the best location and he stated that another monitor could be
placed in the county that would result in more accurate readings.

ADOPTION OF AGENDA

Chairman Keever requested the
addition of a Resolution Authorizing the Executing and Delivery of an Installment
Financing Agreement, a Deed of Trust, a Lease Amendment and Subordination Agreement and a
Construction and Acquisition Agreement and Related Documents in Connection with the
Financing of Governmental Facilities and the Financing and Refinancing of Certain School
Facilities during the Consent Agenda.

Commissioner Harbinson requested the
opportunity to reaffirm and ratify the prior action of the previous Board regarding the
placement of historical documents in each public school during Other Business.

Commissioner Harbinson made a motion
to adopt the agenda as amended.Commissioner
Bolick seconded the motion.The Board voted
unanimously in favor of the motion.

RESOLUTION OF THE N.C. ASSOCIATION OF COUNTY FINANCE
OFFICERS AND THE N.C. GOVERNMENT FINANCE OFFICERS ASSOCIATION

Chairman Keever presented a
Resolution of the N.C. Association of County Finance Officers and the N.C. Government
Finance Officer Association requesting the N.C. Association of County Commissioners and
the N.C. League of Municipalities to make the exemption of county and municipal
governments from paying sales tax a legislative goal of the highest priority.Chairman Keever also pointed out that the
resolution stated that the N.C. Association of County Finance Officers and the N.C.
Government Finance Officers Association recommended that the payment by the State, of the
final annual refunds due to these entities, be spread over a 5-year period.

Commissioner Robertson made a motion
to approve the resolution.Commissioner
Harbinson seconded the motion.The Board voted
unanimously in favor of the motion.

APPOINT VOTING DELEGATE FOR 2004 NACo CONFERENCE

Chairman Keever requested the
appointment of a Voting Delegate for the NACo Conference scheduled for July in Phoenix, Arizona.Chairman Keever stated that he would be attending
the conference.

Commissioner Harbinson made a motion
to appoint Chairman Keever as Voting Delegate for the 2004 NACo Conference.Commissioner Bolick seconded the motion.The Board voted unanimously in favor of the motion.

ADOPTION OF THE ALEXANDER COUNTYHAZARD
MITIGATION PLAN

Terry Foxx, Emergency Management /
Communications / Animal Control Director, presented the Alexander County Hazard Mitigation
Plan for consideration.Mr. Foxx discussed the
federal government Disaster Mitigation Act of 2000 (Federal DMA2K), which stated that each
county or municipality must have a Hazard Mitigation Plan in place for their respective
jurisdictions.Mr. Foxx stated that the plan
assessed vulnerabilities and threats to each jurisdiction.

In the 2001-2002 session of the N.C.
General Assembly, Senate Bill 300 was introduced and adopted, which later turned into
N.C.G.S. 166A or the Emergency Management Act requiring counties and municipalities to
seek reimbursement for any declared disaster.Mr.
Foxx stated that at the April 22, 2002 Commissioners Meeting, the Board approved a
grant application for $20,000 to facilitate for AlexanderCounty and the Town of Taylorsville,
which was received.

Mr. Foxx stated that the Hazard
Mitigation Plan was drafted by Eplan LLC of Statesville along with the help of the
Emergency Management Office, Planning & Development, Tax Office, GIS staff, and other
County departments.Mr. Foxx stated that the
Local Emergency Planning Committee had determined vulnerabilities and hazards for the
plan.Mr. Foxx stated that the plan was
submitted to the State and FEMA in August 2003 for review and approval and he noted that
he had received word that both had approved the plan as presented.Mr. Foxx stated that the next step was for the
Board of Commissioners to approve the plan and he mentioned that the Town Council had
approved the plan on Tuesday, 18, 2004.

At this time, Commissioner Hammer
entered the meeting.The time was 6:24 PM.

Commissioner Robertson discussed the
fact that AlexanderCounty had financial losses in the magnitude of $56 million from
Hurricane Hugo, tornadoes, ice storms, floods, and droughts.Mr. Foxx stated that data was accumulated from state, federal, and local
resources to determine that figure.

Commissioner Robertson made a motion
to approve the Alexander County Hazard Mitigation Plan as presented.Commissioner Hammer seconded the motion.The Board voted unanimously in favor of the motion.

Commissioner Robertson conveyed his
appreciation to all the emergency organizations for always working together during
emergencies such as those included in the plan.

DECLARE SEIZED WEAPONS AS SURPLUS PROPERTY

Sheriff Hayden Bentley informed the
Board that there were many weapons stored in the Sheriffs Department evidence room
that needed to be disposed.Sheriff Bentley
stated that the Sheriffs Department had taken in an increased amount of weapons
since the Domestic Violence Law went into effect in December 2003.He also noted that some of the weapons stored in
the evidence room had been there for 15 to 20 years.

Sheriff Bentley stated that staff had
destroyed the weapons that had orders to be destroyed and had contacted or attempted to
contact the owners of some of the weapons to be picked up.Sheriff Bentley stated that an affidavit was then prepared and presented to
the judge who signed the order allowing the guns to be turned into a licensed dealer with
the proceeds benefiting equipment for law enforcement.He noted that the weapons could only be turned into the dealer if declared
surplus by the Board.

Sheriff Bentley stated that Southern
Public Safety had agreed to give the Sheriffs Department $4,320 for the weapons and
he noted that the funding would then be used to purchase bullet proof vests for officers.Sheriff Bentley noted that vests had been purchased
from Southern Public Safety for many years.

Chairman Keever asked how many vests
could be acquired with the $4,320.Sheriff
Bentley replied that the proceeds would purchase 22 new vests for full-time officers
excluding jail staff.He explained that once
the new vests arrived, the old vests would be used by the part-time officers.

Commissioner Hammer felt that Sheriff
Bentley should investigate a few more dealers to determine if the weapons would generate
higher proceeds.Sheriff Bentley stated that
he would be glad to check around with some other dealers.He explained that the reason he had looked at only Southern Public Safety
was because he had dealt with them for many years and he felt that he would get a better
deal with one company instead of several.

Commissioner Robertson asked if there
was a determined timeframe that this business deal had to be completed.Sheriff Bentley replied that no timeframe had been
determined.

Commissioner Robertson made a motion
to declare the designated weapons as surplus and allow the weapons to be turned over to a
federal licensed dealer for no less than $4,320.Commissioner
Bolick seconded the motion.The Board voted
unanimously in favor of the motion.

BOARD APPOINTMENTS & REAPPOINTMENTS

Chairman Keever recommended that Kim
Cowart be appointed to serve on the Juvenile Crime Prevention Council as a replacement for
Dan Davis.

Commissioner Robertson made a motion
to approve the appointment of Kim Cowart to the Juvenile Crime Prevention Council.Commissioner Hammer seconded the motion.The Board voted unanimously in favor of the motion.

BUDGET ORDINANCE AMENDMENTS #39 - #44

Rick French, CountyManager,
discussed the purpose of Budget Amendments #39 - #44, which included the following
information:

Budget Amendment #39
 To increase the budget for expenditures greater than original budget estimates.

Budget Amendment #40
 To increase the budget for expenditures greater than original budget estimates.

Budget Amendment #41
 To transfer funds to line items that are over-budget due to merit bonuses paid in
March 2004.

Budget Amendment #42
 To transfer funds to line items that are over-budget due to Christmas bonuses paid
on 12/5/2003.

Budget Amendment #43
 To transfer funds for salaries and benefits.

Budget Amendment #44
 To budget for an increase in the ResourceCenter grant due to reallocated funds.To budget for higher demand in DSS for interpreter
services, food stamp payments, and drug screens.To
return a portion of Transportations capital outlay budget to the General Fund.

A.Commissioner Harbinson stated that on November
13, 2001, the Board at that time voted to request the Board of Education to consider
placing the Ten Commandments, Bill of Rights, and the Declaration of Independence in each
school with the condition that the County would bear all expense and liability and that he
would defend any lawsuits free of charge.Commissioner
Harbinson stated that since that meeting, the Board has not gotten a response from the
Board of Education.

Commissioner
Harbinson stated that Commissioner Bolick had began this process in 1999 when he presented
a resolution to place the Ten Commandments by themselves in each school; however he noted
that the Supreme Court had ruled decades earlier that placing the Ten Commandments alone
in schools was unconstitutional, which resulted in several Board members voting against
the resolution.

Commissioner
Harbinson stated that in August 2001, House Bill 195 was passed which allowed each pubic
school in N.C. to have a display of historical documents to include the Ten Commandments.Commissioner Harbinson explained that at the September
18, 2001 meeting, the board approved the distribution of a petition for citizens to sign
in favor of placing a display of historical documents in each public school.He also stated that David Icenhour presented 4,104
signatures at the November 13, 2001 meeting in favor of requesting the Board of Education
to approve the displays.

Commissioner
Harbinson stated that he was recently contacted by Rev. Keith Childers, Chairman of the
Alexander Baptist Resolutions Committee, who requested information on what type of action
had taken place on this issue and why the Board of Education had not responded.Commissioner Harbinson informed the Board that he
provided information to Rev. Childers and he noted that on April 1, 2004 the Alexander
Baptist Association voted unanimously to request the Board of Education to do exactly what
had been asked of them by the Board of Commissioners on November 13, 2001.He noted that a letter had been mailed on April 20,
2004 from the Baptist Association to the Board of Education in regard to that vote.

Commissioner
Harbinson explained that there had been talk as to whether the current board was bound to
the action taken by the previous board on November 13th and he requested that
this Board simply go on record reaffirming and ratify the same action taken before with no
other conditions added.Commissioner Harbinson
stated that the Board of Education was not required to take action; however, he felt that
the Board did deserve the courtesy of some type of response.He stated that he would understand if the Board of Education did not want to
pursue the request on a legal standpoint but he noted that the Board of Commissioners had
taken action and followed through with every single thing the Board of Education requested
during the 5 years he had served on the Board.He
stated that he was simply asking for the courtesy of a reply.

Commissioner
Harbinson pointed out that he had placed a display of historical documents in the
Alexander County Courthouse, at his own expense, to provide an example of what a display
in the public schools could look like.The
display included the Bill of Rights, the Declaration of Independence, and the Ten
Commandments.Commissioner Harbinson stated
that the display cost $650 which would total approximately $6,500 if placed in each public
school.Commissioner Harbinson mentioned,
however, that he felt the citizens would contribute to the placement of these documents in
ours schools if given the opportunity and he also felt that enough funds could be raised
so that no County funding would be contributed.

Commissioner
Harbinson made a motion that the Board re-affirm and ratify the prior action of the
previous Board of Commissioners at its November 13, 2001 meeting at which time the Board
took action by a vote of 4-0 with Commissioners John Watts, Joel Harbinson, David Odom,
and Darrell Robertson voting in the affirmative (with Commissioner William Hammer being
absent) requesting that the Alexander County Board of Education give the County (a) the
express permission to post in each of the 10 local schools in the county, pursuant to
state law, a historical display of documents including but not limited to the Bill of
Rights, the Declaration of Independence, and the Ten Commandments at the expense of the
County, less private donations, if any, received specifically for this purpose; and (b)
the exclusive authority to defend any and all lawsuits, if any, on the behalf of the
Alexander County Board of Education filed as the result of this action under the direction
of County Commissioner Joel Harbinson, who had agreed to represent either or both Boards
in the defense of said lawsuits, free of charge.In
consideration thereof, the County agrees to assume any and all liability incurred by the
Alexander County Board of Education for any and all cost that it may incur as a result
thereof.Chairman Keever seconded the motion.

Commissioner
Keever asked if using private funds only for the displays would change the lawsuit
situation.Commissioner Harbinson stated that
no lawsuits were filed when he placed the display in the courthouse.However, he explained that in this case, some
action would be taken by a governmental agency, which would make things a little
different.He did note that if the displays
were paid with only private funds and not government funds, it would certainly assist in
the defense of the case.Commissioner
Harbinson felt that private funding would be a factor the ACLU would not use against the
County legally.Commissioner Harbinson also
felt that Commissioner Bolick would be a good candidate to raise those funds.

Commissioner
Robertson requested a Friendly Amendment to the motion made to include all documents
listed in N.C.G.S. 115C-81(G)(3)b such as the Magna Carta, the Mecklenburge Declaration,
the Justinian Code, the Pledge of Allegiance, the Preamble to the N.C. Constitution, the
U.S. Constitution, the Mayflower Compact, the National Motto, the National Anthem, the
writings of founding fathers and U.S. presidents, the decisions of the U.S. Supreme Court,
and any acts of Congress.Commissioner
Harbinson accepted the Friendly Amendment.

Commissioner
Keever also requested a Friendly Amendment to the amended motion that the funding for the
historical displays be made by private donations if the Board of Education voted to
approve the placement of the documents since the ACLU would have less of a case if the
displays were paid entirely with private donations instead of with County funds.Commissioner Harbinson accepted the Friendly
Amendment.

Commissioner
Hammer pointed out that the Board had already approved this and he asked why the Baptist
Association came to Commissioner Harbinson instead of speaking directly with the Board of
Education.Commissioner Hammer felt that this
Board was simply caught in the middle since this request had already been made on November
13, 2001.He felt that the Baptist Association
needed to make a request to be placed on the Board of Educations agenda so that they
could address the issue directly with them since they never gave the County a response.Commissioner Harbinson replied to Commissioner
Hammers comments by explaining that several people had felt that the Board of
Education had not taken action on the request because they werent sure if the
current board was still in favor of the request.He
stated that there were 3 members on the current board that had not voted on this issue and
he noted that this would be to simply clarify that the current Board was, in fact, in
favor of the same request as made on November 13, 2001.

Commissioner
Bolick discussed his presentation of a resolution in 1999 and he clarified that the
resolution was not requesting that the Ten Commandments be placed in each school but that
it was simply requesting the support of government officials to seek laws to be able to
have the Ten Commandments placed in public schools.Commissioner
Bolick stated that he was extremely disappointed after that meeting because the request
was cast out and voted down.Commissioner
Bolick stated that he was glad that a bill had been passed allowing historical documents
to be placed in each school.

Commissioner
Harbinson asked Commissioner Bolick if he would be willing to help raise private funds to
pay for these displays if approved by the Board of Education.Commissioner Bolick stated that he would be glad to
seek donations within the churches.

The Board voted
unanimously to approve the re-affirmation and ratification of the prior action of the
previous Board at its November 13, 2001 meeting to also include the amendments made to
include other documents listed in N.C.G.S. 115C-81(G)(3)b as well as to raise private
donations for the cost of the displays in each school if approved by the Board of
Education.

B.Rick French, CountyManager, informed
the Board that bids for the DSS addition would be opened on May 27, 2004.He also noted that the Courthouse / Jail Committee
would tour the Wilkes County Courthouse and the new CaldwellCountyDetentionCenter on May
28, 2004.Mr. French stated that the financial
closing for the DSS Addition, Auditorium, Field House, and the refinancing of ACHS would
be held on or before June 30, 2004.

C.Mr. French stated the County staff had
received a dues request from the WPCOG for a Catawba River Open Space / Recreation Study
and Air Quality.Mr. French felt that this
issue needed to be discussed during the budget work session.

CONSENT AGENDA

Minutes
from May 3, 2004 Regular Commissioners Meeting.

Resolution
Authorizing the Execution and Delivery of an Installment Financing Agreement, a Deeds of
Trust, a Lease Amendment and Subordination Agreement and a Construction and Acquisition
Agreement and Related Documents in Connection with the Financing of Governmental
Facilities and the Financing and Refinancing of Certain School Facilities.

Commissioner Hammer made a motion to
approve the Consent Agenda.Commissioner
Bolick seconded the motion.The Board voted
unanimously in favor of the motion to approve the Minutes from the May 3, 2004 Meeting;
however, the Board voted 4 in favor of the motion (Commissioners Bolick, Hammer, Keever,
and Robertson) to approve the resolution and one against the motion (Commissioner
Harbinson).The motion carried.

ADJOURNMENT

There being no further business for
the regular meeting, Commissioner Bolick made a motion to adjourn at 7:06 PM to reconvene
in the work session.Commissioner Harbinson
seconded the motion.The Board voted
unanimously in favor of the motion.

W. Norris Keever, Chairman
Jamie M. Starnes, Clerk to the Board

Draft

BOARD OF COMMISSIONERS

ALEXANDER COUNTY

WORK SESSION

STATE OF NORTH CAROLINA

May 24, 2004

PRESENT:

W. Norris Keever, Chairman

William L. Hammer, Vice-Chairman

Wesley E. Bolick

Joel C. Harbinson

W. Darrell Robertson

STAFF:

Rick French, CountyManager

Russell Greene, Fire Marshal

Jennifer Herman, Finance Director

Terry Foxx, Emergency Management / Animal Control
Director

Jamie Starnes, Clerk to the Board

MEDIA:

Gary Herman, The Taylorsville Times

The Alexander County Board of
Commissioners held a work session following the adjournment of the regular meeting.

CALL TO ORDER

Chairman Keever called the work
session to order at 7:17 PM.

2004-2005 BUDGET OVERVIEW

Rick French, CountyManager,
presented a budget overview for the 2004-2005 fiscal year.Mr. French stated that he wished to highlight a few aspects of the budget to
provide some initial information for the Boards review.

Mr. French discussed the Water Fund,
which is broken up into 3 separate funds including the Bethlehem Water, Sugar Loaf Water,
and Highway 16 South Water.Mr. French
presented proposed budget for each water district including $679,000 for Bethlehem,
$253,330 for Sugar Loaf, and $479,034 for Highway 16 South totaling $1,411,364 for all 3
districts.Mr. French stated that the only
proposed increase was a water rate increase of 5% per 1,000 gallons bringing the cost from
$2.66 per 1,000 gallons to $2.79 per 1,000 gallons with no increase in the minimum. Mr. French pointed out that the increase would help
maintain and extend the current water system.

Mr. French discussed the Solid Waste
Fund which included a proposed budget of $1,357,207.Mr.
French stated that there would be no changes in fees and he noted that the transfer
station debt would be paid off this year.He
also stated that he was happy to note that no funding would be taken from the General Fund
to support the Solid Waste Fund.Mr. French
mentioned that the TeagueTown and Highway 16 North convenience site leases would expire
in December 2004.

Mr. French stated that the proposed
total General Fund was $24,299,562.There was
only 1.3% to 1.4% new tax growth, meaning very little new revenue.Mr. French stated that he was recommending the tax
rate remain at 46.5 cents based on 95% collections.He
also noted that staff had calculated sales tax low for the budget based on the current
year.He explained that sales tax was
deposited monthly instead of quarterly like last year and he noted that the payments ran 2
months behind.Mr. French pointed out that
this presented a problem when tracking the numbers because Junes payment
wouldnt be received until September.Jennifer
Herman, Finance Director, stated that staff had to simply guess at the total, which they
did on the low side.

Commissioner Harbinson inquired about
what percentage of the proposed budget equaled sales taxes and property taxes.Ms. Herman replied that sales tax represented 24%
of the budget while 37% of the budget was property taxes.

Commissioner Robertson was concerned
that auditors would not be able to finalize the audit until October with Junes
payment not being received until September.Ms.
Herman explained that the auditors would have the Countys numbers up through August
15, 2004 and that and estimate would be determined for Junes sales tax based on what
had been received for the prior 11 months.Ms.
Herman stated the estimate was usually pretty close to the actual payment so that it was
determined as an immaterial difference.However,
she informed the Board that staff would be allowed by the auditors to go back and make and
audit adjustment if the estimate came out to be far from the actual payment.Mr. French noted that the budget was always a
moving target because it was constantly changing throughout the year.

Mr. French discussed some projects
that the County would be undertaking if the proposed budget was approved including moving
forward with the consolidation of 911 Communications and the Sheriffs Department.Mr. French stated that 4 employees would be
transferred from the Sheriffs Department to 911 Communications during the
consolidation, which would become effective July 1, 2004.Mr. French also stated that a County garage was proposed to begin July 1,
2004 as well to provide basic service for passenger type vehicles.He explained that staff had taken the Maintenance
& Repair and Automotive Supplies line items out of every departmental budget and
placed the total amount into the Garage budget.He
noted that several departments would benefit from the County garage including Fire
Marshalls Office, Emergency Management, Environmental Health, Solid Waste, Public
Service, Sheriffs Department, Animal Control, and Recreation.Mr. French informed the Board that the garage would
not be able to service vans or ambulances but he noted that he hoped that those vehicles
would be included in the near future.

Mr. French stated that he had
budgeted in a full-time Economic Developer position to be filled by David Icenhour.He also pointed out that the budget included a new
ambulance for EMS, a new van for the Transportation Department, 4 new vehicles for
the Sheriffs Department, new debt payments for the DSS Addition totaling $119,000
and the Auditorium/Field House/ACHS Refinancing totaling $587,000, $4.5 million for
Alexander County Schools, and a 2.5% cost of living increase for employees effective
August 1, 2004.

Mr. French discussed some programs
that had been recommended for less funding or no funding at all including the Pre-Trial
Release Program.Mr. French stated that the
budget for the Pre-Trial Release Program for 2003-2004 totaled $24,317 and he noted that
the program had requested a budget of $30,149 for 2004-2005.Mr. French recommended $0 funding for this program because costs had
increased since its conception.He explained
that staff had researched what had been spent on food and medical in 2003 before the
program began and 2004 after it began.Mr.
French informed the Board that $113,740 was spent on an average of 29 inmates through the
end of March 2003 and he pointed out that $128,150 was spent on an average of 32.5 inmates
through the end of March 2004.Mr. French
stated that the program was intended to greatly reduce the number of inmates as well as
the cost for food and medical, which it did not.

Mr. French stated that WPCOG had
requested $2,794 for a Catawba River Open Space / Recreation Study as well as $8,847 for
air quality, which was not recommended.Others
that were not recommended for funding included Carolina Land & Lakes request for
$3,000 and Domestic Violences request for $3,000.Mr. French stated that the HiddeniteCenter had requested $24,000 but he
recommended the current appropriation of $15,000.The
Rescue Squad requested $42,000 but again he recommended the current appropriation of
$36,653.Mr. French reiterated that the last
year did not show a lot of growth, resulting in little revenue.

Mr. French discussed a computer
ledger distributed to the Board that showed in detail the current and project revenues as
well as proposed budget appropriations for all departments.Mr. French stated that the first 5 pages were the 2004-2005 projected
revenues totaling $8,970,000 and he mentioned that there were 60 pages of General Fund
expenses, most of which were at or below the 2003-2004 appropriation.

Mr. French reviewed a few of the
General Fund expenses including the following:

Economic Development Budget

The proposed
Economic Development budget totals $86,589.Mr.
French stated that no funding had been proposed for the Chamber of Commerce since David
Icenhour would be doing most of the Countys economic activities, industrial and
business recruiting, etc.

Garage Budget

The proposed Garage
budget totals $164,512.Mr. French reiterated
that most of the funding for this budget had come from each County departments
Maintenance & Repair and Automotive Supplies line items.Mr. French stated that staff was in the process of getting all vehicle
information computerized so that each service and repair could be tracked.

Pre-Trial Release Program

Mr. French stated
again that no funding had been budget for this program due to increased costs of
approximately $15,000 within the last year.

Commissioner
Harbinson stated that he had been informed by the Sheriff that the County would save
approximately $57,000 in the next year by getting inmate meals from the new prison.Commissioner Harbinson asked whey the Pre-Trial
Release Program was being completely cut out if the County was expecting such a savings.Mr. French replied that the program had still cost
the County more money instead of saving money as anticipated.Commissioner Robertson stated that program was
expected to save $30,000 to $50,000 and he noted that those goals were far from met.

911 Communications

The proposed
consolidated 911 Communications budget totals $293,204.Mr. French again noted that 4 Sheriffs Department employees were to be
moved into this department due to the consolidation.

EMS

The proposed EMS
budget totals $1,251,816.Mr. French stated
that this budget included a new ambulance.He
also mentioned that EMS had requested a QRV type vehicle to provide additional response
which was not proposed to be funded.

Library

The proposed Library
budget totals $400,227.Mr. French stated that
this budget appropriation was the same amount appropriated this current budget year.

Commissioner
Harbinson pointed out that the 2003-2004 funding for the Library showed in the ledger was
$402,227.Ms. Herman stated that the Library
had received 2 $1,000 grants from Wal-Mart which would account for the extra $2,000.

SeniorCenter

The proposed SeniorCenter
budget totals $95,554.Mr. French stated that
this was a slight increase from the current year and that it was mostly in the salary line
item.Mr. French stated that there was
currently an Interim Director working at 30 hours a week, 1 full-time employee, and 2
part-time positions, one of which was filled.He
noted that a part-time position would need to be filled with the upcoming Bethlehem
satellite office.

Board of Education

The proposed
appropriation for the Alexander County School System / Board of Education totals $4.5
million.

Due to Other Funds

Mr. French explained
that this budget totaled $3,341,228 and included items such as the debt payments for the
DSS addition, Auditorium/Field House/ACHS refinancing, revaluation, etc.

Special Appropriations

Mr. French stated
that items included in this budget was funding for the HiddeniteCenter, Human Relations
Council, HickoryAirport, etc.

Contingency

Mr. French stated
that items included in this budget were funding for the cost of living increase for County
employees, funding for the new Sheriffs Department vehicles, adjustments on property
and liability insurance, workers compensation insurance, etc.

Solid Waste

The proposed Solid
Waste budget totals $1,357,207.Mr. French
stated that the proposed budget was less than the current year.

Mr. French stated that a public
hearing would be held on June 7, 2004 at 6:00 PM to allow citizen comment on the proposed
budget.Mr. French noted that 2 Board members
would not be present at that meeting so he requested a budget work session be scheduled on
June 14, 2004 at 6:00 PM.He also suggested
that the 2004-2005 budget be adopted on June 14th instead of during the regular
meeting scheduled for June 21st.He
explained that adopting the budget earlier would allow staff to have time to close out the
year and set up new accounts.

Mr. French took this opportunity to
thank Ms. Herman and the Finance staff for all of their hard work during the preparation
of the proposed budget.Mr. French also
thanked Judy Feimster, Administrative Assistant, for the preparation of the budget books.Mr. French stated that this was a flat, balanced
budget that would accomplish some things and follow through with some projects.

Commissioner Harbinson stated that he
needed to leave the meeting.However, he
thanked Mr. French and Ms. Herman for a great job on the budget preparation.At this time, Commissioner Harbinson was excused
from the meeting.The time was 7:49 PM.

Mr. French briefly discussed the
lease building in Bethlehem.He stated that
some funding had been placed in the Public Buildings budget for some minor repairs to the
building but he noted that nothing had been appropriated for manpower.Mr. French informed the Board that the Library was
interested in the building and had provided some floor plans.He also stated that the SeniorCenter could utilize
the space as well.

Commissioner Bolick felt that the
Board needed to schedule a time to allow citizens to visit the building and tell the Board
what they wanted to see in that building.Chairman
Keever suggested staff develop some initial plans to show the public and then have an open
forum at the building.Commissioner Hammer
suggested holding a Commissioners Meeting there.Mr. French suggesting waiting until August or September to begin intensive
plans for the building.

Commissioner Hammer stated that he
was pleased that no funding would be taken from the General Fund for the Solid Waste
budget this year.Commissioner Hammer also
discussed the $1 gate fee for the convenience sites that was approved during the last
budget process and he asked what revenue had been collected from it.Mr. French replied that the $1 gate fee had brought
in approximately $144,000 which had tremendously helped improve the Solid Waste fund.

Commissioner Robertson pointed out
that a clause was added in as part of the budget ordinance for the 2003-2004 year that all
invoices were to be turned into Finance in a timely manner.He requested that the same clause be included in the 2004-2005 budget.Mr. French noted that it would stay in place.

Commissioner Robertson conveyed his
appreciation to Mr. French and Ms. Herman for the job they have done on the budget as well
as the department heads who worked hard to put the budget requests together.Commissioner Robertson stated that AlexanderCounty
had a group of good, efficient employees and he noted that he appreciated them all.

Chairman Keever also conveyed his
appreciation for the hard work done on the budget proposal.

Commissioner Bolick made a motion to
enter into Closed Session at 8:07 PM to prevent the disclosure of confidential information
as well as to discuss contractual matters pursuant to N.C.G.S. 143-318.11(a)(1 & 5).Commissioner Robertson seconded the motion.The Board voted unanimously in favor of the motion.

ADJOURNMENT

There
being no further business, Commissioner Robertson made a motion to adjourn at